Schedule of cash collections of accounts receivableOfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 30% pay theiraccounts in the month of sale, while the remaining 70% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows:October$58,000November65,000December72,000The Accounts Receivable balance on September 30 was $35,000.Prepare a schedule of cash collections from sales for October, November, and December. Enter all amounts as positive numbers.OfficeMart Inc.Schedule of Cash Collections from SalesFor the Three Months Ending December 31Line Item DescriptionReceipts from cash sales:Cash salesSeptember sales on account:Collected in OctoberOctober sales on account:Collected in OctoberCollected in NovemberNovember sales on account:Collected in NovemberCollected in DecemberDecember sales on account:Collected in DecemberTotal cash collectedOctober November December14,50016,25000 018,000

The objective of the question is to prepare a schedule of cash collections from sales for October,…

Answered: Schedule of cash collections of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Sequoia Furniture Company's sales over the past three months, half of which are for cash, were as follows: March $ 420,000 April $ 670,000 May $ 540,000 1. Assume that Sequoia's collection period is 60 days. What would be its cash receipts in May? What would be its accounts receivable balance at the end of May? 2. Now assume that Sequoia's collection period is 45 days. What would be its cash receipts in May? What would be its accounts receivable balance at the end of May? 1. Collection period is 60 days Cash receipts Accounts receivable balance 2. Collection period is 45 days Cash receipts Accounts receivable balance
Schedule of Cash Collections of Accounts Receivable Pet Supplies Inc., a pet wholesale supplier, was organized on January 1. Projected sales for each of the first three months of operations are as follows: January $160,000 February 240,000 March 340,000 All sales are on account. 58% of sales are expected to be collected in the month of the sale, 37% in the month following the sale, and the remainder in the second month following the sale. Prepare a schedule indicating cash collections from sales for January, February, and March. Pet Supplies Inc. Schedule of Cash Collections from Sales For the Three Months Ending March 31 January February March January sales on account: Collected in January $ Collected in February $ Collected in March $ February sales on account: Collected in February Collected in March March sales on account: Collected in March Total cash collected $ $ $
The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year. 04 $480 Sales 01 $ 210 02 $ 270 a. Accounts receivable at the beginning of the year are $480. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Beginning receivables Sales Cash collections Ending receivables $ Beginning receivables S Sales Cash collections Ending receivables 03 $ 330 Beginning receivables Sales Cash collections Ending receivables Q1 S Q1 480 210 585 105 $ 01 Answer is complete and correct. 480 210 $ 00 480 210 Q2 105 $ 270 b. Accounts receivable at the beginning of the year are $480. The company has a 60-day collection period. Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the…
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Cash disbursements schedule Maris Brothers, Inc., needs a cash disbursement schedule for the months of April, May, and June. Use the format given here and the following information in its preparation. Sales: February $493,000; March $517,000; April $539,000; May $627,000; June $660,000; July $651,000 Purchases: Purchases are calculated as 65% of the next month's sales, 12% of purchases are made in cash, 55% of purchases are paid for 1 month after purchase, and the remaining 33% of purchases are paid for 2 months after purchase. Rent: The firm pays rent of $8,020 per month. Wages and salaries: Base wage and salary costs are fixed at $5,700 per month plus a variable cost of 7.3% of the current month's sales. Taxes: A tax payment of $54,700 is due in June. Fixed asset outlays: New equipment costing $74,900 will be bought and paid for in April. Interest payments: An interest payment of $30,100 is due in June. Cash dividends: Dividends of $13,000 will be paid in April. Principal repayments…
Cash collections The treasurer of Homeyra Corp. needs to estimate cash collections from accounts receivable for September, October, and November. Forty percent of the company's customers pay in cash and the rest are credit customers. The collection pattern for the credit customers is 20 percent in the month of sale and 80 percent in the following month. Because of Homeyra's established client base, the company experiences almost zero uncollectible accounts. Estimated total sales for August, September, October, and November follow. Month Sales August $78,000 September 80,000 October 95,000 November 91,000 Determine Homeyra Corp.'s cash collections for September, October, and November. Cash Collections: September $ 32,000 x October $ 0 x November $ 0 x Check
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Cash disbursements schedule The Coffee Specialist Corporation has approached you to compile a cash disbursement schedule for the months of March, April, and May. Use the following information to prepare this schedule.Sales: January = $520,000; February = $540,000; March = $550,000; April = $600,000; May = $660,000; June = $670,000Purchases: Purchases are calculated as 70% of the following month’s sales, 50% of purchases are made in cash, 30% of purchases are settled one month after purchase, and the remaining 20% of purchases are settled 2 months after purchase.Rent: The firm pays rent of $9,500 per month.Wages and salaries: The fixed wage and salary costs are $7,500 per month plus a variable cost of 6.5% of the current month’s sales.Taxes: The tax bill to be paid in May amounts to $57,500.Fixed asset outlays: New equipment will be acquired during March at a cost of $85,000.Interest payments: An amount of $32,000 for interest is due in March.Cash dividends: Dividends of $15,000 will be…
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Schedule of Cash Receipts
Budgeting Cash Collections Lowell Consulting, which sells on terms 2/10, n/30, had credit sales for March and April of $90,000 and $75,000, respectively. Analysis of Lowell's operations indicates that the pattern of customers' payments on account is as follows (percentages are of total monthly credit sales) In month of sale in month of following sale Uncollectible accounts, returns, and allowances Receiving Discount Beyond Discount Period Totals 20% 60% 20% 35% 5% 100% 40% 15% Determine the estimated cash collected on customers' accounts in April.

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